“I don’t think it’s a buy anything in the sector setup, but I do believe that this week of earnings gives companies the way to restructure guidance because everything went bad in the fourth quarter,” Michael Bapis said on CNBC’s “Trading Nation.”

Bapis, managing director of Vios Advisors at Rockefeller Capital Management, said a favorable regulatory environment for multinational companies could push these stocks higher, but that investors should wait to “see what earnings look like this week” and “re-evaluate on Monday.”

Caterpillar rebounded Tuesday, after sliding more than 9 percent Monday — its worst day since 2011 — following earnings. Minnesota Mining and Manufacturing also moved higher Tuesday after beating top and bottom line estimates. The company did, however, lower its guidance. Industrial giants GE and Honeywell also report earnings this week, before the bell on Thursday and Friday respectively.

“If you look at the chart on the XLI it bounced in late December off an incredibly important support level, its trend line going all the way back to the crisis lows back in 2009. Since then it’s rallied very strongly,” he said.

The XLI, an ETF that tracks the biggest industrial names, was trading around $70 on Tuesday. Maley says this is a key level for the ETF since it was previously the support level but is now the resistance line.

Essentially, $70 used to be the level that the ETF would bounce higher from after being in a downtrend, but after the broader sell-off in the fourth quarter, $70 became the high level that the ETF continuously struggled to stay above.

According to Maley, if the ETF can meaningfully break above $70, there could be more gains ahead.

“If it can [hold above $70], maybe it shows that all the concerns over global growth aren’t quite as bad as they thought they were,” he said, adding to “keep an eye on Honeywell, how things react to that later in the week.”

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